MTN Nigeria’s ₦153bn Listing on NSE and Its Possible Impacts

In 2017, MTN Nigeria revealed its intention to list ₦153bn worth of shares on the Nigerian Stock Exchange (NSE). If successful, this move would position MTN Nigeria (MTNN), the country’s largest telecommunications provider, valued at approximately $6bn, to complete one of the largest transactions ever on the African capital markets.

The push for this listing came after the Nigerian Communications Commission (NCC) imposed a ₦330bn fine on MTNN in 2015 for failing to disconnect unregistered SIM cards within the required deadline. The fine was to be paid in seven installments, with one of the conditions being that MTNN list on the NSE to help raise the capital necessary to settle the fine.

On April 9, 2018, NCC’s Executive Vice Chairman, Prof. Umar Danbatta, confirmed that MTNN had paid ₦165bn of the ₦330bn fine. As per their agreement, the listing would play a key role in helping MTNN clear the remaining balance. This move is expected to leave a lasting impact on the MTN brand.

Equity Funding:  

The listing would improve MTNN’s capital structure by allowing them to raise funds from the local equity market. This would reduce the company’s reliance on its South African parent and lessen their dependence on debt financing, particularly from Nigerian banks.

Sense of Belonging:

The listing could foster a sense of pride and ownership among Nigerians, giving them the opportunity to become part-owners of the telecom giant. This, however, would depend on how widely the company opens its doors to Nigerian investors, enabling a larger pool of citizens to own a stake in the business.